New MEG Energy CEO hints at future expansion plans at Christina Lake
In a letter to shareholders released this week, MEG Energy's new CEO Derek Evans says his company is "at the threshold of significant transformation." Evans says MEG's Vision 20/20 is a proven, low-risk, high-return plan that should bring production to 113,000 bbl/day by 2020.
MEG's Phase 2B eMSAGP expansion cost the company $340 million, bringing production at Christina Lake over 100,000 bbl/day. The technology involves the co-injection of a non-condensable gas, reducing steam loads by as much as 50%.
The company's lastest 13,000 bbl/day Phase 2B brownfield expansion has a projected capital cost of $275 million, bringing new production online sometime next year and ramping up to full capacity in 2020.
The CEO hinted at additional brownfield expansions at Christina Lake, which will bring production "well beyond" 113,000 bbl/day. The company has promised to provide more details in the future when finalized.